Michael Kors Holdings Limited operates as an accessories, footwear and apparel company. The company has a presence in approximately 100 countries. Segments The company operates its business in three segments: Retail, Wholesale, and Licensing. Through its Retail and Wholesale segments, the company sells its products in three principal geographic markets: North America, Europe and Asia. As of March 28, 2015, the Retail segment included: 343 North American retail stores, including concessions and its U.S. e-commerce site; and 183 international retail stores, including concessions, in Europe and Japan. As of March 28, 2015, the Wholesale segment included wholesale sales through approximately 2,541 department store and specialty store doors in North America; and wholesale sales through approximately 1,497 specialty store and department store doors internationally. The Licensing segment licenses to third parties certain production, sales and/or distribution rights through geographic licensing arrangements. Collections and Products The company has two primary collections that offer accessories, footwear and apparel: the Michael Kors collection and the MICHAEL Michael Kors collection. The Michael Kors Collection In the Michael Kors collection, the company offers accessories, including handbags and small leather goods, many of which are made from leathers and other exotic skins, footwear and apparel, including ready-to-wear womenswear and menswear. The MICHAEL Michael Kors Collection In the MICHAEL Michael Kors collection, the company offers: accessories, primarily handbags, which are created to meet the fashion and functional requirements of its consumer base, and small leather goods, such as clutches, wallets, wristlets and cosmetic cases; footwear, exclusively in women’s styles; and womenswear, including dresses, tops, jeans, pants, skirts, shorts and outerwear. Licensed Products Watches: Fossil has been the company’s exclusive watch licensee. Watches are sold in its retail stores, its e-commerce site and by Fossil to wholesale customers in addition to select watch retailers. Eyewear: In January 2015, Luxottica became its exclusive eyewear licensee for developing distinctive eyewear. The company’s eyewear products are focused on status eyewear with sunglasses serving as a key category. Eyewear is sold in its retail stores, its e-commerce site and by Luxottica to wholesale customers in addition to select sunglass retailers and prescription eyewear providers. Jewelry: Fossil is the company’s exclusive fashion jewelry licensee. The company’s jewelry product line is complementary to its watches and accessories lines and is comprised of bracelets, necklaces, rings and earrings. The company’s jewelry is sold in its retail stores, its e-commerce site and by Fossil to wholesale customers in addition to other specialty stores. Fragrances and Beauty: Estée Lauder is the company’s exclusive women’s and men’s fragrance licensee. Fragrances are sold in its retail stores, its e-commerce site and by Estée Lauder to wholesale customers in addition to select fragrance retailers. Estée Lauder also became its exclusive licensee of beauty products, which includes nail lacquers, lip products, powders, and a collection of body and sun products. Customers The company’s wholesale customer, Federated, accounted for 13.7% of its total revenue for Fiscal 2015. Business Strategy The company’s business strategy includes the following: increase brand awareness; expand global retail store base and e-commerce; expand North American shop-in-shop footprint at select department stores; increase global comparable store sales; and grow international retail and wholesale businesses. Intellectual Property The company owns the Michael Kors and MICHAEL Michael Kors trademarks, as well as other material trademark rights related to the production, marketing and distribution of its products, both in the United States and in other countries in which its products are principally sold. Seasonality The company’s Wholesale segment generally experiences its greatest sales in its third and fourth quarters while its first quarter experiences the lowest sales. The company’s Retail segment experiences greater sales during its third quarter as a result of Holiday season sales. Regulations Accessories, footwear and apparel sold by the company is subject to regulation in the United States and other countries by governmental agencies, including, in the United States, the Federal Trade Commission and the Consumer Products Safety Commission. Accessories, footwear and apparel sold by the company is also subject to import regulations in the United States and other countries concerning the use of wildlife products for commercial and non-commercial trade, including the U.S. Fish and Wildlife Service. The company is also required to comply with the disclosure requirements under the Securities Exchange Act of 1934, as amended, relating to the use of conflict minerals in its products.
michael kors holdings ltd (MKO:Berlin)
London, WC2B 6UF
Phone: 44 2076 328 600
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